England’s housing shortfall could reach one million within 10 years if more consented land is not brought forward, Savills has warned.
The agent said the number of residential planning consents is failing to keep up with increased levels of housebuilding in key UK markets. In areas such as south Buckinghamshire and Worthing the number of new-home starts is almost five times higher than for units gaining consent over the past three years.
“Although we have seen an increase in new-home starts over the last two years, progress could come to a halt if we are not able to replenish the supply of consented land, particularly in the high-demand markets of Surrey, Hampshire, Berkshire, Cambridgeshire and parts of Suffolk,” said Susan Emmet, head of residential research at Savills.
“It is vital that decision makers recognise the importance of releasing substantially more land in the right place. Without this, additional demand will inevitably lead to higher land values, a squeeze on developer margins and a choking off of volume growth.”
The research said that private housebuilders cannot be the only solution to the housing crisis. There were 115,000 private starts in the year to March but, even assuming a 6% controlled growth, output will only rise to 150,000 by 2010.
Savills said housing associations, local authorities and the private rented sector will need to fill this gap. Currently, the three combined deliver around 25,000 homes pa and this needs to be increased to 55,000 pa to make a dent in the housing supply shortfall.
